South Carolina General Assembly
107th Session, 1987-1988

Bill 3674


                    Current Status

Bill Number:               3674
Ratification Number:       429
Act Number                 399
Introducing Body:          House
Subject:                   Liability for civil damages
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A399, R429, H3674)

AN ACT TO AMEND SECTION 33-55-210, CODE OF LAWS OF SOUTH CAROLINA, 1976, AND SECTIONS 38-73-457, 38-77-112, AND 38-77-280, ALL AS AMENDED, RELATING TO THE CIVIL LIABILITY OF A LICENSED HEALTH CARE PROVIDER, THE REQUIREMENT OF EVERY AUTOMOBILE INSURER AND RATING ORGANIZATION TO FILE ANNUALLY A BASE RATE WITH THE CHIEF INSURANCE COMMISSIONER, NO AUTOMOBILE INSURER BEING REQUIRED TO WRITE COVERAGE FOR AUTOMOBILE INSURANCE FOR ANY APPLICANT OR EXISTING POLICYHOLDER WHO DOES NOT POSSESS A VALID SOUTH CAROLINA DRIVER'S LICENSE, THE AUTHORITY OF AUTO W BILE INSURERS TO REFUSE TO WRITE AUTOMOBILE PHYSICAL DAMAGE INSURANCE COVERAGE FOR ANY APPLICANT OR EXISTING POLICYHOLDER WHERE ONE-OR MORE OF THE CONDITIONS OR FACTORS PRESCRIBED IN SECTION 38-73-455 EXIST, SO AS TO MAKE TECHNICAL INTERNAL CORRECTIONS TO REFERENCES; SECTION 38-7-180, RELATING TO THE FILING WITH THE CHIEF INSURANCE COMMISSIONER REQUESTING A CHANGE IN RATES SOLELY TO REFLECT CHANGES IN TAX LIABILITIES, SO AS TO AUTHORIZE AN INSURANCE COMPANY WHICH INSURES ONLY CHURCHES AND ITS PROPERTY FROM TAXES LEVIED ON INSURANCE COMPANIES UNDER VARIOUS PROVISIONS AND TO DELETE REFERENCES TO THE AUTHORITY OF THE COMMISSION TO ADJUST THE PREMIUM RATES CHARGEABLE ON CERTAIN POLICIES; SECTION 38-77-10, AS AMENDED, RELATING TO THE DECLARATION OF PURPOSE FOR THE REFORM OF AUTOMOBILE INSURANCE AND INSURANCE PRACTICES, SO AS TO DELETE THE REQUIREMENT THAT THE INSURANCE COMMISSION APPROVE A TERRITORIAL CLASSIFICATION PLAN PROMULGATED BY THE CHIEF INSURANCE COMMISSIONER AND TO MARE CORRECTIONS REGARDING REFERENCES; SECTION 38-77-30, AS AMENDED, RELATING TO DEFINITIONS USED RECORDING AUTOMOBILE INSURANCE, SO AS TO MAKE A TECHNICAL CORRECTION; SECTION 38-77-270, AS AMENDED, RELATING TO LIABILITY INSURANCE TO PROVIDE MINIMUM LIABILITY AND UNINSURED MOTORIST COVERAGE, SO AS TO DELETE ALL REFERENCES TO THIS COVERAGE AND OTHER REFERENCES REGARDING COVERAGE IN EXCESS OF CERTAIN CODE PROVISIONS AND RECORD THE PROVISION DEALING WITH LICENSED ART CARE AND TREATMENT; SECTION 38-75-210, RELATING TO PREMIUMS DECLARED TO BE UNEARNED WHICH ARE HELD BY THE INSURER IN RESPECT TO THAT PART OF THE POLICY TERM SUBSEQUENT TO THE ANNIVERSARY DATE OF THE THEN CURRENT POLICY YEAR, SO AS TO CORRECT A CLERICAL ERROR; AND TO REPEAL SECTION 38-5-180 RELATING TO THE EXEMPTION OF AN INSURER OF CHURCHES FROM CERTAIN TAXES LEVIED ON INSURANCE COMPANIES.

Be it enacted by the General Assembly of the State of South Carolina:

Liability for civil damages

SECTION 1. The second paragraph of Section 33-55-210 of the 1976 Code, as added by Act 149 of 1987, is amended to read-

"No licensed health care provider, as defined in Section 38-79-410, who renders medical services voluntarily and without compensation, expectation, or promise of it, to any person at any hospital, clinic, public school, nonprofit organization, or any agency of the State or one of its political subdivisions where no charges are made by the licensed health care provider for any medical services rendered at the facility is liable for any civil damage or any act or omission resulting from the rendering of services unless the act or omissi result of the licensed health care provider's gross negligence or wilful misconduct. The agreement to provide voluntary noncompensated service must be made before the rendering of the service by the licensed health care provider."

Company exempt from taxes

SECTION 2. Section 38-7-180 of the 1976 Code is amended to read:

"Section 38-7-180. An insurance company exempt from federal income tax pursuant to Section 501(c)(3) or (4) of the Internal Revenue Code of 1986, and which insures only churches and their property, is exempt from taxes levied on insurance companies in Sections 38-7-20, 38-7-30, and 38-7-40. To provide exemption from federal income tax under Section 501(c)(3) or (4) of the Internal Revenue Code of 1986, the company shall provide to the Commissioner a certificate issued by the Internal Revenue Service demonstrating the company's tax-exempt status. The company shall further provide evidence satisfactory to the Commissioner that it only insures churches and their property."

Insurers to file

SECTION 3. The first paragraph of Section 38-73-457 of the 1976 Code, as last amended by Act 166 of 1987, is further amended to read:

"Notwithstanding Sections 38-73-920 and 38-73-1210, every automobile insurer and rating organization shall, prior to October 1, 1987, file with the Commissioner a base rate, which is defined as a rate by coverage calculated solely upon the experience generated by the risk for each class and territory retained by the insurer in its voluntary book of business and which must not include experience generated by risks ceded or assumed from the Reinsurance facility established under Section 38-73-1030. An objective standards rate by coverage must also be filed which is twenty-five percent above the base rate previously described for each class and territory. The base rate must be calculated by removing from the rate or premium charge, then in effect for the automobile insurer, that portion of the rate or premium charge attributable to the net gain or loss of the insurer as a result of participation in the operating results of the Facility as required by Section 38-77-760. In determining the base rate and objective standards rate, by coverage, the Commissioner, in order that no extra premium revenue is generated by this section, shall require that the insurer's average rate, by coverage, on October 1, 1987, (computed as a weighted average of the base rate and objective standards rate, by coverage, as determined by the Commissioner), not exceed the insurer's average rate, by coverage, prior to October 1, 1987, as determined by the Commissioner. The provisions of the Administrative Procedures Act apply to any court appeal of a base rate or objective standards rate brought thereunder. The base rate or objective standards rate approved by the Commissioner may be put into effect under bond in a similar manner that a public utility may put a proposed rate increase into effect under bond as provided by law. No insurer may file a base rate for any class or territory which is higher than the rate or premium charge, exclusive of that portion required by Section 38-77-460, approved by the Commissioner for use on October 1, 1987. As a result of this section, no insured may receive an increase in rates for other than an increase in coverage or due to the provisions of Section 38-77-280, 38-77-610, or 38-73-455, unless the insurer files additional rates in accordance with this title."

Risk and classification plans

SECTION 4. Section 38-77-10(1) of the 1976 Code as last amended by Act 166 of 1987, Is further amended to read:

"(1) To provide that every automobile insurance risk which is insurable on the basis of the criteria established in this chapter is entitled to automobile insurance from the automobile insurer of the applicant's choice on the basis of the same rates, policy forms, claims service, and other services provided by the insurer to all other applicants or insureds falling within the classification of risk and territory under the applicable risk and territorial classification plan promulgated by the Commissioner so long as all these applicants or insureds have satisfied the same objective standards as established in Sections 38-77-280 and 38-73-455; "

Definition

SECTION 5. Sections 38-77-30(13) and ( 14) of the 1976 Code, as last amended by Act 166 of 1987, are further amended to read:

"(13) 'Uninsured motor vehicle' means a motor vehicle as to which:

(a) there is not bodily injury liability insurance and property damage liability insurance both at least in the amounts specified in Section 38-77- 140, or

(b) there is nominally that insurance, but the insurer writing the same successfully denies coverage thereunder, or

(c) there was that insurance, but the insurer who wrote the same is declared insolvent, or is in delinquency proceedings, suspension, or receivership, or is proven unable fully to respond to a judgment, and

(d) there is no bond or deposit of cash or securities in lieu of the bodily injury and property damage liability insurance.

A motor vehicle is considered uninsured if the owner or operator is unknown. However, recovery under the uninsured motorist provision is subject to the conditions set forth in this chapter.

Any motor vehicle owned by the State or any of its political subdivisions is considered an uninsured motor vehicle when the vehicle is operated by a person without proper authorization.

(14) 'Underinsured motor vehicle' means a motor vehicle as to which there is bodily injury liability insurance or a bond applicable to the time of the accident in an amount of at least that specified in Section 38-77- 140 and the amount of the insurance or bond:

(a) is less than the limit for underinsured motorist coverage under the insured's policy; or

(b) has been reduced by payments to persons, other than an insured, injured in the accident to an amount less than the limit for underinsured motorist coverage under the insured's policy."

Insurance required to be written

SECTION 6. Section 38-77-112 of the 1976 Code, as last amended by Act 166 of 1987, is further amended to read:

"Section 38-77- 112. Notwithstanding Sections 38-77- 110, 38-77-920, and 38-77-280, no automobile insurer is required to write coverage for automobile insurance as defined in Section 38-77-30 for any applicant or existing policyholder who does not at the time of application or renewal possess a valid South Carolina motor vehicle driver's license. This section does not apply to an individual who is handicapped and who owns a vehicle in this State but who does not have a valid driver's license. If an automobile is principally garaged and operated in this State, the owner of the vehicle must be offered coverage thereon regardless of whether or not he possesses a valid South Carolina driver's license if he designates to the insurer who the principal operator of the vehicle will be and this person has a valid South Carolina driver's license or otherwise meets the requirements of this section. This requirement does not apply to personnel of the Armed Forces of the United States on active duty and officially stationed in this State who possess a valid motor vehicle driver's license issued by another state or territory of the United States or the District of Columbia. This requirement is waived ninety days for individuals who move into South Carolina with the intent of making South Carolina their place of residence if they possess a valid driver's license issued by another state or territory of the United States or the District of Columbia."

Christian Science care and treatment

SECTION 7. Section 38-77-270 of the 1976 Code, as last amended by Act 166 of 1987, is further amended to read:

"Section 38-77-270. Nothing in this title prohibits an insurer from providing Christian Science or any licensed healing art care and treatment- Any Christian Science or any licensed healing art care and treatment constitutes economic loss."

Insurers may refuse to write insurance

SECTION 8. Section 38-77-280(B) and (C) of 1976 Code, as last amended by Act 166 of 1987 are further amended to read:

"(B) Notwithstanding subsection (A) and Sections 38-77-110 and 38-77-920, automobile insurers may refuse to write automobile physical damage insurance coverage, including automobile comprehensive physical damage, collision, fire, theft, and combined additional coverage, for any applicant or existing policyholder, on renewal, for a motor vehicle customarily operated by an individual, either the named insured or any other operator not excluded in accordance with Sections 38-77-340 and 56-10-60 and who resides in the same household, where one or more of the conditions or factors prescribed in Section 38-73-455 exist. In addition, automobile insurers may refuse to write physical damage insurance coverage to any applicant or existing policyholder, on renewal, who has collected benefits provided under any automobile insurance physical damage coverage during the thirty-six months immediately preceding the effective date of coverage, for two or more total fire losses or two or more total theft losses.

(C) Notwithstanding Section 38-77- 110, automobile physical damage coverage in an automobile insurance policy may be canceled at any time during the policy period by reason of the factors or conditions described in Section 38-73-455(A) which existed prior to the commencement of the policy period and which were not disclosed to the insurer at the commencement of the policy period."

Repealed

SECTION 9. Section 38-5-180 of the 1976 Code is repealed.

Premiums considered unearned - conditions

SECTION 10. Section 38-75-210(2) of the 1976 Code is amended to read:

"(2) Every such policy, and the manual of rules and rates of every insurer issuing such policies in this State, shall provide that all premiums held by the insurer in respect to that part of the policy term subsequent to the anniversary date of the then current policy year are considered unearned and must be refunded in full if the policy is cancelled, without respect to whether cancellation is effected by the insured or insurer. In . the event of cancellation during the first year of the policy term, refund of premium for that portion Or the policy term must be on a pro rata basis if cancellation is effected by the insurer or on the short rate basis if cancellation is effected by the insured. In the event of cancellation during the second year of the policy term, refund of that portion of the unearned premium attributable to the second year must be on a pro rata basis if cancellation is effected by the insurer or on the short rate basis if cancellation is effected by the insured, subject, however, to the provision that the portion of the unearned premium attributable to the third year is considered entirely unearned and must be returned in full regardless of the party responsible for cancellation. In the event of cancellation during the third year of the policy term, refund of that portion of the unearned premium attributable to the third year must be on a pro rata basis if cancellation is effected by the insured."

Time effective

SECTION 11. This act takes effect upon approval by the Governor.